How about a little bit of trivia? On average, in a traditional transaction, how many people are involved in and during the sales process? Answer……at the bottom of this post.
Continuing from my explanation last week on the series of “How Do Real Estate Agents Get Paid?!” I will be explaining all the details and services of what I do to earn my commission while representing a buyer in a “traditional” real estate transaction. Traditional, for purposes of this topic, will be a seller of a residential property represented by a listing agent who is selling to a buyer, represented by a separate agent, who is using a mortgage to purchase the property.
How about we just dive right in?
First and foremost, the way a traditional transaction works regarding compensation to the real estate agent is quite simple. The seller, as negotiated between him or her and the listing agent, determines a commission to be paid at the sale of the house. Additionally, in the listing agreement, each party agrees to a commission split to be paid to any cooperating broker, or a selling agent. From this, the seller of a property pays both the listing agent and the selling agent. So, you as the buyer, how much exactly do you have to pay to utilize the services of a real estate agent?
NOTHING (keeping in mind the “traditional” aspect to the transaction in this discussion).
Now, for you as the buyer, you get what you pay for, right? I mean, if you don’t have to pay anything, then you are on your own and the selling agent who has been driving you around all this time is only there to write the offer and that’s where their work stops, right? Not a chance.
Once you decide to utilize the services of a real estate agent, and specifically MY services, you get an entire TEAM on your side. Yes, a team of professionals dedicated to making sure you get the house you want. My team consists of:
1) Mortgage brokers and loan originators to get you preapproved.
2) Inspectors to make sure the house you are eyeing is in good condition.
3) Insurance agents to insure the biggest purchase of your life.
4) Title companies to make sure you have a clean and clear title to the property.
5) Closing agents to prepare and help you understand the pile of documents you are signing.
6) WDO (wood destroying organisms) inspectors to make sure you there aren’t any critters feasting on your prospective property.
7) Surveyors to ensure you know exactly what you are purchasing.
8) Contractors to help repair any damage or necessary items before closing.
9) Home warranty companies to give you more peace of mind after the purchase.
10) And of course, yours truly, ME! (there are others on my team which get involved depending on the circumstances).
After discussing the steps of getting preapproved, going over the inventory in the local market, showing you what you can get for your money, and finding a house that you want to turn into a home, I transition into a new role. My next job is to act as a project coordinator/manager to ensure that each aspect of the transaction is met, resolved, or negotiated prior to closing. Additionally, during the offer and contract stage, I work for you to increase your buying power. What is “buying power?” you ask. Your buying power is how much house you can get for YOUR money. By increasing your buying power, I am increasing the amount of homes you can view and are eligible to buy considering your budget, loan preapproval, and needs. So instead of looking at 6 homes you think you could possibly afford, I will take you to 12 homes which I will show you HOW you can afford with the same budget, needs, and circumstances. Pretty neat, isn’t it?
So to recap, you, as the buyer, get all of the services and people listed above when you decide to jump into the home buying arena. You get to take advantage of services which demonstrate years of experience, knowledge, professionalism, integrity, and enthusiasm for absolutely no cost to you! No gimmicks, no slight of hand tricks, this is the real deal!
Thinking of purchasing a home in the near future? I would love to sit down and show you exactly how to increase your buying power and give you a demonstration of how my team works in the process of finding you a perfect home.
Now on to the answer….the average number of people involved in a traditional transaction? 43!